Digital art platform to phase out services, reflecting broader challenges in the NFT market.
On January 17, MakersPlace, a digital art platform founded in 2018, announced its decision to close. The platform functioned as an NFT marketplace, allowing artists and collectors to create, buy and sell digital artworks. However, ongoing challenges in the NFT industry and difficulties in obtaining additional financing prompted this decision.
1/6 MakersPlace announces market exit
After six incredible years of supporting digital art, MakersPlace is ceasing operations. Here’s what it means for our artists, collectors and supporters, and how we ensure a smooth transition.
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— MakersPlace
(@MakersPlace) January 16, 2025
As part of the shutdown, MakersPlace has disabled new account creation, token importing, and mining with immediate effect. While there will be no new exhibitions or events, existing artworks will remain available for purchase for a limited time.
The company has pledged to help artists and collectors transfer their assets, ensure employees receive severance packages and return unused funds to investors.
As MakersPlace prepares to wind down operations, it has advised users to transfer their assets from the platform’s custodial wallets to their wallets. The company plans to introduce an enhanced transfer feature in February 2025, with the current transfer deadline set at June 2025.
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This closure comes during a turbulent period for the NFT market. According to a report from DappRadar, NFT trading volumes saw a sharp decline in 2024, from $5.3 billion in the first quarter to $1.5 billion in the third quarter, before recovering slightly to $2.6 billion in the fourth quarter.
In 2024, NFT trading volumes fell 19% and revenue fell 18% compared to 2023, making it one of the worst performing years for NFTs since 2020.
Source: DappRadar
Non-fungible tokens are digital assets that use blockchain technology to verify ownership of unique items such as art, music or collectibles. While the technology gained widespread attention and adoption in 2021, recent trends have highlighted its volatility and the challenges of maintaining market momentum.